We have expanded our franchise finance team and launched a new partnership. See our recent press release below for details:
Responding to growing news reports and concerns that the franchise sector is faced with significant lending constraints that will continue to worsen, Direct Capital Corp. has launched several initiatives to help franchisees maintain access to capital.
Working on behalf of its franchise partners, the company announced that a significant portion of its new lending facilities will be used to keep capital flowing through leading franchise systems. In addition, Direct Capital, a leading nationwide provider of franchise financing for more than 15 years, has announced that it has expanded its franchise financing team to better support the industry.
Citing a recent report prepared by FRANdata for the International Franchise Association (IFA) that projected a 40% reduction in available credit to franchisees over the coming year, Robyn Gault, Direct Capital’s Director of Strategic Accounts, said it is a critical time to get behind the franchise space.
“The retreat of many lenders from the market over the last several months has left franchisees with very few options,” said Gault. “Growing concern over access to financing to support growth and upgrade initiatives has driven several leading brands to take an active role in securing lending for their franchisees to protect the growth and health of their systems. We have the financial strength to support franchisors and the companies that sell equipment to them.”
Gault said that Direct Capital’s offering has peaked the interest of many businesses involved in the franchise industry, including franchisors, vendors, and associations. The company recently announced an exclusive partnership with the National Franchisee Association, an association of BURGER KING® franchisees, to launch a finance program created to support various equipment upgrades.
Direct Capital was recently named among the Equipment Leasing and Finance Top 100 companies, according to The Monitor, a leading industry trade publication. Monitor also ranked Direct Capital as the 6th largest independent provider of equipment financing in the United States.
Direct Capital, which provides a wide range of financial services, secured $100 million from Key National Finance and other conduits and banks in April. That came on the heels of the renewal of an additional $100 million line from DZ Bank. They have been one of the few, if not the only, specialty finance companies over the last 9 months to secure new capital.
Franchisors, Vendors and Associations interested in securing lending for their franchisees, customers and members, are urged to contact Robyn Gault at (603) 433-9476.